Financial Data and Key Indicator Changes - CMB reported operating net revenue of RMB 264.8 billion, an increase of 5.3% year-on-year [8] - Net income attributable to shareholders reached RMB 106.9 billion, up by 14.21% year-on-year [9] - Return on average assets (ROAA) and return on average equity (ROAE) were recorded at 1.5% and 18.2%, respectively, with increases of 0.06 and 0.11 percentage points year-on-year [9] - The CET1 ratio increased to 12.85% [10] Business Line Data and Key Indicator Changes - Retail assets under management (AUM) reached RMB 11.96 trillion, up by RMB 1.2 trillion from the end of last year, reflecting a growth rate of 11.16% [11] - Noninterest net income from wealth management increased to RMB 102.7 billion, up by 1.85% year-on-year, despite a high base from last year [12] - Fee and commission income from wealth management was RMB 25.5 billion, down by 13.1% year-on-year [13] Market Data and Key Indicator Changes - Total loans and advances grew to RMB 5.99 trillion, an increase of RMB 424 billion or 7.62% [14] - Customer deposits reached RMB 7.09 trillion, surpassing the RMB 7 trillion threshold, up by 11.71% compared to the end of last year [19] - The NPL balance totaled RMB 57 billion, an increase of RMB 6.2 billion year-on-year, with an NPL ratio of 1.21% [25][26] Company Strategy and Development Direction - CMB aims to strengthen its capabilities in wealth management, fintech, and risk management, aligning with its long-term strategic goals [29] - The company emphasizes retail banking as the backbone of its business, focusing on creating value for clients and maintaining profitability [35][41] - CMB plans to continue its prudent and stable provision policy, with a provision coverage ratio of 455.6% [27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging external environment, including economic pressures and the impact of the pandemic on loan demand [28] - The company expects to face significant pressure in the fourth quarter due to ongoing economic challenges and fluctuations in the capital market [28] - Management remains committed to its market mechanism and corporate governance structure, emphasizing the importance of performance-based management [49][58] Other Important Information - The company reported a decrease in the customer deposit cost ratio to 1.51%, up by 11 basis points year-on-year [21] - CMB's NIM was 2.41%, down by 7 basis points year-on-year, influenced by multiple cuts in the LPR [22] - The company is focusing on enhancing its asset allocation strategy to manage risks and optimize returns [90] Q&A Session Summary Question: Will CMB change its business strategy under the current external environment? - Management confirmed that CMB will maintain its retail banking strategy, which has been the backbone of its business, to ensure stable growth [35][36] Question: Concerns about CMB's stock price and market mechanism? - Management acknowledged the decline in stock price but emphasized that the market mechanism will remain unchanged, focusing on profitability and performance-based management [45][46][49] Question: What is the outlook for asset quality, particularly in real estate? - Management indicated that the NPL ratio for real estate is being closely monitored, with no major changes in strategy, and expects the NPL formation ratio to stabilize [74][78] Question: What is the strategy for asset allocation in the upcoming quarters? - Management stated that they will adjust their asset allocation strategy based on market conditions, focusing on retail loans and SME loans while managing risks [88][90] Question: What is the outlook for fee income growth? - Management reported a slight increase in noninterest income but acknowledged challenges due to market fluctuations, indicating a focus on diversifying income sources [114][115]
CM BANK(CIHKY) - 2022 Q3 - Earnings Call Transcript